Quiz on ” Equities – Why do Investors Buy Shares “

1. What is the difference between income investors and growth investors?

A) Income investors want regular dividends, while growth investors seek capital gains.

B) Income investors want capital gains, while growth investors seek regular dividends.

C) Income investors and growth investors are the same.

2. What is the main reason investors seek diversification?

A) To increase risk by investing in different companies and sectors.

B) To decrease risk by investing in different companies, sectors, and countries.

C) To invest in only one company or sector to achieve higher returns.

3. Why do some investors prefer higher-yielding investments during times of high inflation?

A) Because higher-yielding investments are less volatile during times of high inflation.

B) Because higher-yielding investments provide a greater return after accounting for inflation.

C) Because higher-yielding investments are more stable during times of high inflation.

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